Choosing a car in 2025 isn’t as simple as picking petrol or diesel anymore. The automotive landscape in Australia is shifting faster than ever, with a growing mix of electric, hybrid, and traditional engines dominating the roads. So, which cars are topping the sales charts based on their powertrains?Â
Electric Vehicles Continue to Rise
When it comes to electric vehicles (EVs), Tesla is the clear front-runner, dominating the market with its Model Y. The American brand has sold over 23,000 EVs this year alone, outselling many other brands combined. It’s not surprising though, given the increasing demand for clean energy alternatives and Tesla’s reputation for performance and technology.
BYD is close on Tesla’s heels with over 19,000 electric vehicles sold, showing that the Chinese automaker is quickly becoming a household name in Australia’s electric car market. Kia and MG are also making waves, with the Kia EV6 and MG ZS EV capturing the public’s attention for their affordability and value, details Drive.
But the rise of EVs isn’t limited to the mainstream brands. BMW has reported a significant uptick in sales of its electric i4 and iX models, signaling a shift in consumer interest towards luxury EVs. As more Australians make the switch to electric, the future looks greener, with a record 40 brands now offering fully electric vehicles in Australia.
The Rise of Hybrid Cars in Australia
While EVs are clearly on the rise, hybrids are far from being a thing of the past. Toyota remains the undisputed king of hybrids in Australia, accounting for nearly 60% of hybrid sales in 2025. The Toyota RAV4 Hybrid continues to reign as the best-seller, proving that Aussie drivers still love the reliability and fuel efficiency of a hybrid. Hyundai and GWM are trailing behind, with the Hyundai Kona and GWM Haval both performing solidly in the market.
Hybrids seem to strike the perfect balance for Australians who aren’t quite ready to make the full switch to electric. These vehicles provide a taste of green driving without the range anxiety that sometimes comes with EVs. Plus, the financial incentives and savings on fuel make hybrids a practical choice for many.
Petrol and Diesel Still Have Their Place
Despite the rapid shift towards electrification, petrol and diesel vehicles are still very much a part of the landscape. Mazda, Hyundai, and Kia are leading the charge in the petrol-only market, with their range of affordable and reliable sedans and SUVs. The Mazda CX-5 continues to be one of the best-selling petrol models, offering solid performance, great fuel efficiency, and a well-rounded driving experience.
When it comes to diesel, Ford is still a powerhouse, largely thanks to its Ranger and Everest models. These rugged vehicles are built for the Australian outback, with diesel engines that offer greater torque and efficiency for long drives and towing. Toyota, Mitsubishi, and Isuzu also dominate the diesel market, especially in the ute and SUV categories.
The Mild-Hybrid Market Is Growing
While mild-hybrids still represent a small fraction of overall sales, they’re gaining momentum. These vehicles use a smaller electric motor to assist with acceleration, making them more fuel-efficient without the complexity of full hybrid systems. Toyota is leading the pack, with their HiLux and Prado models making up most of the sales in this category. Other brands like BMW and Mazda are also tapping into the mild-hybrid space, offering consumers a less expensive alternative to full hybrid or electric options.
A Diverse Future
As we move further into 2025, the landscape of car sales in Australia is increasingly diverse. It’s no longer just about petrol or diesel engines; now, buyers have a wide array of options to suit their needs and preferences. Whether it’s the fully-electric, eco-friendly appeal of a Tesla, the practicality and savings of a Toyota hybrid, or the power of a Ford diesel, there’s something for everyone.
The shift toward sustainable powertrains is unmistakable, and with more manufacturers investing in greener technologies, the future of Australia’s car market is undoubtedly electric — but with plenty of room for hybrids and traditional engines to continue for years to come.
